Vic network tender faces audit review

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The Victorian Auditor-General is to review the controversial
$187.5 million state emergency services Metropolitan Mobile Radio
Network tender.

The tender, awarded to Motorola in March, is to build a network
to connect police, fire and paramedic emergency services vehicles
and mobile units. It was the subject of legal threats from
engineering company Tyco in 2003, after the company claimed it had
been shut out of the bid unfairly.

According to a report on state finances presented by the state
Auditor-General last week, the tender process is now to be reviewed
to ensure it was fair and equitable.

The Auditor-General's report also reveals risks associated with
the project that will be borne by the state rather than the
contractor.

These include obsolescence over the seven-year term of the
contract. Any changes to the contract to deal with issues of
changing technology will come at additional cost to taxpayers.

Movements in the consumer price index are also carried by the
state. As the a fixed price is to be paid for the network there is
also a risk associated with network under-utilisation.

At the end of the project the state has the option to acquire
the network. At that time Motorola will assign software licenses
the government but fees for this are subject to negotiation at that
time.

The Auditor-General has determined the nature of the contract is
essentially that of a financial lease, as the network carries a
nominal value of $1 million at the end of the seven-year contract
term and Motorola must at that point offer to sell its interest to
the government.

For that reason the network will appear as a commitment in the
annual report until the network is completed.

The project will deliver a dedicated wireless network, in the
greater Melbourne and Geelong areas, through which computers in
emergency vehicles will be linked to central databases, dispatch
centres and other in-vehicle computers. The full system will
feature access via touch-screen computers.

Emergency service personnel will gain the ability to extract and
lodge paperwork and information from the field and have increased
protection through an emergency distress button feature.